Are you unable to arrange the down payment for your dream house? Depending on your credit score the down payment amount would be determined while getting a mortgage and buying a home. For instance, if your credit score is below 580 the down payment would range between 5% and 10%. In case you are falling short of the amount then there are programs for down payment assistance to purchase homes in Texas that you can avail. For better clarity on the subject, we will answer the common queries on down payment and government assistance for the same.
What do you mean by a down payment?
When buying a house, you would need to put a certain amount as a down payment; a portion of the actual house cost. The down payment amount varies based on multiple factors, such as the kind of loan, the credit score, etc.
What do you mean by down payment assistance?
Down Payment Assistance is a government-backed program that comes in different variations to help people financially. If you are unable to arrange the down payment amount against the property, you can seek a DPA grant and get approved provided you meet the eligibility criteria.
What is the eligibility for DPA?
The eligibility criteria for DPA in Houston, Texas are as follows:
- It must be your first time buying a home.
- You must not have owned a home in the last 3 years.
- You must be able eligible for a fixed-rate mortgage.
- It must be for the primary residence that you intend on keeping that way for the coming 5 years.
- The house that you intend on buying should be within the city limits of Houston.
- You must have a minimum credit score of 580.
- Your debt-to-income ratio must be between 39% and 425.
These are the standard eligibility criteria for the DPA program. The key factor in getting the DPA aid is finding the right lender who can offer you flexibility when seeking the down payment. The terms and conditions for down payment assistance tend to vary in each region, so you should consult with either a local lender or one who has extensive knowledge on the overall subject of DPA.
Down payment assistance to purchase homes in Texas makes it easy for you to get the required funding for owning the property. All you need is to get in touch with a reliable lender to get you an appropriate DPA aid.